Cristian Păun, Romania’s leading economist, has warned that a new unified salary law risks deepening the country’s budgetary woes unless the state itself undergoes sweeping reform. Speaking on Sunday’s Digi 24 show “În fața ta,” Păun argued that Bucharest is trying to square three contradictory objectives—cutting the deficit, meeting PNRR milestones, and keeping civil-service pay high—while financial resources shrink. “To introduce a new unified salary law now, without reforming the Romanian state, is a major problem,” he said. The interview airs at 14:00 on Digi 24 .
Păun’s warning comes as Romania struggles to reconcile EU fiscal rules with domestic political pressures. The draft law aims to standardise public-sector pay scales, but the economist cautioned that without broader institutional reform—including streamlined bureaucracy and stricter spending controls—the measure could widen the budget gap. “The state is trying to reconcile incompatible goals,” he told viewers. “We cannot keep raising salaries while pretending the deficit will disappear.”
The professor also dismissed calls for steeply progressive income taxation, calling it “populist illusion.” In certain scenarios, he said, marginal rates could climb to 65–70 percent, yet without matching deductions and lower social contributions, such hikes would fail to boost revenue. “It is illusory to believe you can apply a high progressive tax without generous deductions and lower other levies,” Păun argued .
On pensions, Păun warned that any attempt to nationalise private pillar-II funds would trigger a “massive scandal” and erode public trust. “These are legally protected private assets,” he said. “Intervening would destroy confidence in the state and destabilise the economy.” Instead, he urged policymakers to nurture capital markets and deploy the funds more efficiently .
The warnings arrive as Romania’s ruling coalition faces mounting pressure to deliver fiscal consolidation ahead of the autumn budget cycle. Analysts note that without credible reform, the unified salary law could become another unfunded mandate, pushing the deficit further from EU targets. Păun’s intervention underscores the tension between short-term political promises and long-term macroeconomic stability.